Asked by Victoria Grose on May 08, 2024
Verified
The division's margin used to compute ROI is closest to:
A) 29.6%
B) 35.1%
C) 21.9%
D) 7.7%
ROI
An evaluation tool applied to determine the profitability or efficiency of a single investment or to analyze and compare the efficacy of multiple investments.
Margin
The difference between the selling price of a product and its cost, often expressed as a percentage of the selling price.
- Comprehend the procedures involved in determining margins and turnovers.
Verified Answer
VN
Vuyisile NgwenyaMay 13, 2024
Final Answer :
D
Explanation :
Margin = Net operating income ÷ Sales
= $2,808,960 ÷ $36,480,000 = 7.70%
= $2,808,960 ÷ $36,480,000 = 7.70%
Learning Objectives
- Comprehend the procedures involved in determining margins and turnovers.